China Investigates Everbright Trading Glitch

Deluge of Buy Orders Briefly Sends Shanghai Index Up 5.6%

By

Shen Hong

Updated Aug. 18, 2013 11:52 p.m. ET

Confidence in China's equities took a fresh blow after a rogue trade sparked wild swings in the market, which analysts say could further deter investors from one of the world's worst performers this year.

An accidental deluge of "buy" orders by Everbright Securities on Friday sent the benchmark Shanghai index up 5.6% within minutes, before it ended the day with a loss, while the midsize broker was suspended from trading...